Insurance is an agreement between two parties to bear a loss which occurred. Insurance can be an assortment of types, ranging from health insurance, accident insurance, life insurance, education insurance, vehicle insurance, to the shariah insurance. Do you want to open the insurance? But before you sign up for insurance, we suggest you first learn important terms in the world of insurance:
Insurer means the party who is willing to bear the loss, in this case means the insurance company where you registered. It is important for you to conduct in-depth and thorough research on various types of insurance companies before determining which one is the most appropriate for you.
Premium is an amount of money that you must pay each month as a sign of participation in an insurance program. The magnitude of the premium that is paid is determined by the insurance company in accordance with the criteria set out and also the condition of you.
The policy is a written agreement between you as the insured and the insurance company as an insurer. Policy or contract of insurance are consensual and is made in written form.
Insured means the person or party who uses the services of insurance company losses and guaranteed by the company.
5. Sum assured
After you make a request formally to the insurance company, the insurance company will pay a sum of money in accordance with an agreement or policy that made both sides at the beginning of the period of the agreement. This money does not include a number of other payments stated in the policy.
6. Insurance claims
Insurance claims are formally request from you to the insurance company to pay the money over a loss or events taking place in accordance with an agreed policy. This request could also be called a letter of request for the closure of the insurance.
The bonus money is outside the accepted sum assured the insurance holder at the time it was committed.
The process of payment by the insurance company to you as the individual insurance holders called annuity.
Actuaries are persons who have undergone various technical training of insurance. Responsibility of the actuary is to determine the magnitude of the premium payable for long term insurance. He must ensure the premium amount according to your needs and circumstances.
Agents are a number of people who represent an insurance company to conduct marketing, negotiations, submission of terms and conditions, as well as services to prospective insured.
Lapse means the cancellation or suspension of the agreement between the insurer and the insured because the insured cannot or has not paid the premiums until the grace period passes.
12. Waiting period
A waiting period is the period in which the insurer shall pay the insurance money to the holder in accordance with the agreed treaty. Long waiting period can vary, ranging from 6 months to 2 years.
13. Lapse Notification
Lapse notification is a notification from the insurance company to the insurance holder that the insurance has been canceled based on the premium payment has not been received. Therefore, if you are already an insurance holder, pay the premium in accordance with the provisions.
That’s the basic terms that should be noted when you would like to register to become the holder of the insurance. After understanding these terms, you can research the multiple insurance companies and the insurance products they offer. Make sure you choose the type of insurance best suits your abilities and needs.